Google has paid Canadian media outlets CAD 100 million to use its content, addressing long-standing complaints about tech giants siphoning ad revenue from traditional news organizations, The Economic Times reported.
The payment, amounting to CAD 69 million, was transferred to the Canadian Journalism Collective, a non-profit tasked with distributing the funds.
This came in response to Canada’s Online News Act, passed in 2023, which mandates tech platforms to compensate news publishers. Similar laws have been enacted in Australia and parts of Europe.
Google’s move follows accusations that it and Meta, which collectively control 80% of Canada’s advertising revenue, were profiting off news content without fair compensation.
Under the terms of the deal, 30% of the funds will go to broadcasters, while the remainder will support news publishers.
The agreement also averts a potential standoff. Meta had already blocked news content on Facebook and Instagram in Canada to avoid similar compensation obligations, and Google had considered following suit before settling with Canadian authorities.